SPB Development delays Main Market IPO launch to unspecified date

• Originally scheduled for April 21, the delay followed a “thoughtful assessment” by the management team, according to a notice from the property developer’s external public relations firm sent on Thursday.

KUALA LUMPUR (April 17): SPB Development Bhd has delayed the launch of its initial public offering (IPO) on the Main Market to an unspecified date due to the current market uncertainties.

Originally scheduled for April 21, the delay followed a “thoughtful assessment” by the management team, according to a notice from the property developer’s external public relations firm sent on Thursday.

The move is aimed at “ensuring the company’s market entry takes place under conditions that support long-term value creation for its investors and stakeholders”, the notice said.

The delay comes at a time of volatile stock markets amid escalating international trade tensions and uncertainties over US tariff policy following multiple flip-flops and other news headlines.

SPB Development followed the footsteps of Cuckoo International (MAL) Bhd, which decided last week to postpone its listing by two months. Cuckoo International has begun taking orders from investors and has offered to refund investors who seek to withdraw from the IPO.

Bursa Malaysia has hosted seven IPOs since March, and all but one flopped on their first day of listing amid the market turmoil. 

SPB Development still has time before the regulatory approval for its listing lapses. Under listing regulations, a company must complete its IPO within six months of approval, which the company secured and announced in February.

The Melaka-based developer is seeking funds to acquire more land among others, according to its draft prospectus posted in October 2024. Part of the proceeds will also be used as working capital for upcoming residential development phases in Kedah and Selangor estimated to cost RM210 million.

An offer for sale in conjunction with the IPO will also raise some cash for executive chairman Datuk Yap Pit Kian, who will be selling down his existing shares.

Hong Leong Investment Bank is the IPO’s principal adviser, bookrunner and underwriter, while Sierac Corporate Advisers is the financial adviser.

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